Average rents in the U.S. aren’t growing as quickly as landlords would like

Apartment rents ticked up in June across the country, but the growth isn’t as strong as landlords would probably want.

The average asking rent in the U.S. rose by 0.2 percent month over month in June to $1,749, according to a report from commercial real estate data provider Yardi Matrix. 

Compared to the same time the year before, the average rent is 0.9 percent higher, a growth rate below pre-pandemic times. From 2013 to 2019, asking rents climbed on average by 1.8 percent during the second quarter. And since most renting happens in the first half of the year, 2025 will likely pan out to be a weak year for rent growth, according to the firm.

Though demand remains strong for apartment rentals — particularly as home prices have never been higher — economic uncertainty, tariffs and immigration concerns continue to weigh on large swaths of the market.

The Midwest is experiencing the steepest growth in rents, continuing a recent trend for the region. Chicago ranked No. 1 among the nation’s top metropolitan areas for the highest yearly rent growth of 3.6 percent. Columbus, Ohio was second, with the average rent rising by 3.3 percent. Third place went to Kansas City, Missouri, with a rent increase of 3.2 percent year over year.

The Midwest is also the region that is recently seeing the greatest spike in residential construction. Many buyers and renters, particularly foreigners, have been lured to the region in hopes of more space and increasing remote work opportunities. In 2023, Oklahoma and Ohio were among the top states for net migration.

Thirteen of the top 30 markets in the country saw their average rents plunge in June year over year, according to the analysis. Rents in Austin fell the most, by 4.7 percent, followed by Denver, by 3.9 percent.

Rents in Austin plummeted last year as well. Developers raced to build in the Texas capital to meet growing demand, but an oversupply has led to falling prices. In June, Austin was also the city with the greatest share of its multifamily stock completed in the prior 12 months.